The Analytical Overview of the Main Currency Pairs on 2017.12.15

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18256

Open: 1.17771

% chg. over the last day: -0.43

Day's range: 1.17646 – 1.17972

52 wk range: 1.0341 – 1.2069

The ECB, as expected, left interest rates at the same level. The regulator published optimistic economic forecasts. At the same time, EUR/USD closed the trading session in the negative zone. The Central Bank is concerned about low inflation. The ECB plans to adhere to the current monetary policy rate. At the moment, the technical pattern on EUR/USD is ambiguous. The trading instrument is in a sideways trend (1.17650-1.18000). We recommend opening positions from the key levels.

The news feed on 2017.12.15:

- The Eurozone trade balance at 12:00 (GMT+2:00);

- The volume of industrial production in the US at 16:15 (GMT+2:00).

Indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.17650, 1.17300, 1.17000

Resistance levels: 1.18000, 1.18400, 1.18750

If the price fixes below 1.17650, it is necessary to consider sales of EUR/USD. The movement is tending to 1.17300-1.17000.

Alternative option. If the price fixes above the resistance level of 1.18000, we recommend looking for entry points to the market to open long positions. The movement is tending to 1.18400-1.18750.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.34147

Open: 1.34291

% chg. over the last day: +0.09

Day's range: 1.34218 – 1.34475

52 wk range: 1.1450 – 1.3618

The Bank of England, as expected, left the key interest rate at the previous level of 0.50%. Yesterday's trading on the GBP/USD currency pair was quite active. However, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. GBP/USD is consolidating. The key trading range is still 1.34100-1.34550. Additional support for the pound is provided by a positive report on retail sales in the UK. Positions must be opened from the key levels.

The news feed on the UK economy is calm.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.34100, 1.33700, 1.33100

Resistance levels: 1.34550, 1.35100, 1.35400

If the price fixes above the resistance level of 1.34550, we recommend considering buying GBP/USD. The movement is tending to 1.35000-1.35400.

If the price fixes below 1.34100, you need to look for entry points to the market to open short positions. The target level of movement is 1.33700-1.33500.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28115

Open: 1.27898

% chg. over the last day: -0.16

Day's range: 1.27414 – 1.28039

52 wk range: 1.2059 – 1.3795

On the USD/CAD currency pair the bearish sentiment is prevailing. Demand for the Canadian dollar has grown significantly. The head of the Bank of Canada noted positive changes in the labor market. Next year, the Central Bank may raise the issue of raising interest rates. At the moment, the price is testing the local support of 1.27400. The round level of 1.28000 is already a "mirror" resistance. The trading instrument is tending to reduce.

At 15:30 (GMT+2:00) there will be data on sales in the manufacturing sector of Canada.

The indicators point to the power of buyers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a fall in USD/CAD.

Stochastic Oscillator is located near the oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/CAD.

Trading recommendations

Support levels: 1.27400, 1.27000, 1.26500

Resistance levels: 1.28000, 1.28650

If the price fixes below the local support of 1.27400, we recommend considering selling USD/CAD. The immediate goal for fixing profits is a round level of 1.27000. When tracking positions, one should use a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.536

Open: 112.384

% chg. over the last day: -0.13

Day's range: 112.031 – 112.402

52 wk range: 99.53 – 118.67

USD/JPY continues to show negative dynamics. In the Asian session, the trading instrument formed a local offer zone of 112.350-112.500. At the moment, the price is testing a round level of 112.000. The USD/JPY quotes have the potential to further decline. We recommend opening positions in the direction of the current trend.

It is necessary to pay attention to the news background on the US economy.

The indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a bearish sentiment on USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.

Trading recommendations

Support levels: 112.000, 111.500

Support levels: 112.000, 111.500

If the price fixes below the round level of 112.000, we recommend considering selling USD/JPY. The movement is tending to 111.500. When tracking positions, one should use a trailing stop.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.